Final Struggles in Used Car Market Opening Debate, Civic Groups Urge "Full Opening" (Comprehensive)

Used Car Trade Industry Development Council Expected to Reach Conclusion Next Week
Civic Groups "Consumer Rights First, Urge Full Liberalization"

[Asia Economy Reporter Changhwan Lee] The consultative body established to decide whether completed car manufacturers will enter the domestic used car market has repeatedly failed to reach a conclusion as the deadline approaches, with ongoing disagreements.

Related civic groups have urged for the rapid opening of the domestic used car market, emphasizing that consumer rights enhancement should take precedence over stakeholders' interests.

According to the automotive industry on the 26th, the 'Used Car Sales Industry Development Council' has been unable to reach a conclusion nearly three months after starting discussions. Launched on June 9, the council consists of the Democratic Party's Euljiro Committee, the Ministry of SMEs and Startups, the Ministry of Land, Infrastructure and Transport, the National Federation of Automobile Sales Business Associations, the Korea Automobile Sales Business Association Federation, the Korea Automobile Industry Association, and the Korea Imported Automobile Association.

Originally, the agreement was to be finalized by the end of August, but disagreements among parties on some contentious issues have delayed the conclusion. The council is expected to hold a press conference and announce the final results as early as next week, regardless of whether a final agreement is reached. In the worst case, there is also the possibility of a breakdown.

The current contentious issue is the standard for the 'total volume' of used cars that completed car manufacturers can handle. The annual transaction volume in the domestic used car market is about 2.5 million units, of which about 1.3 million are dealer transactions and about 1.2 million are direct transactions between individuals.

The completed car industry’s position is to handle about 10% of the total 2.5 million units, approximately 250,000 units, including both dealer and individual transaction volumes. On the other hand, the used car industry opposes this, arguing that only 10% of the dealer transaction volume of 1.3 million units, excluding individual transactions, should be allowed for completed car manufacturers. According to the used car industry's view, the volume that completed car manufacturers can handle would be limited to about 130,000 units.

However, the core issue beyond quota restrictions is whether completed car companies can handle vehicles from other companies. The used car industry insists that Hyundai should only handle Hyundai vehicles and Kia only Kia vehicles, opposing full allowance of aggregation, while the completed car industry argues for opening aggregation, citing reverse discrimination against imported cars and infringement on consumer choice.

As discussions stall, concerns among civic groups are growing. They argue that if the used car market is not opened, the damage will ultimately fall on consumers.

The Transportation Solidarity, a coalition of automotive-related civic groups including the Citizens' Traffic Safety Association, the Traffic Culture Movement Headquarters, the Saemaeul Traffic Volunteer Corps, and the Automobile Citizens' Union, issued a statement on the day saying, "It is concerning that the Used Car Sales Industry Development Council, launched to conclude whether completed car manufacturers can enter the used car sales market, has been unable to reach an agreement nearly three months after starting discussions."

The signature campaign initiated by the Transportation Solidarity in April to urge the full opening of the used car market received high attention, surpassing 100,000 participants within a month of its launch.

The Transportation Solidarity urged, "The parties involved in the Used Car Sales Industry Development Council should prioritize how much they can enhance consumer rights over their own interests and reach a final agreement within this month as originally planned. If a final conclusion is not reached within this month, the agenda should be immediately handed over to the Ministry of SMEs and Startups to open the market."

This content was produced with the assistance of AI translation services.